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See I don't think that's true. They aren't smart. Everyone hates dealerships. Tell me one person that likes their dealership? They deal with them because they h
by shyn3 6y ago
See I don't think that's true. They aren't smart. Everyone hates dealerships. Tell me one person that likes their dealership? They deal with them because they have to for the warranty then they get a new car when their lease is up because it's easier to deal with compared to mechanics. I just want to pick the exact car I want and get it. It's nearly impossible with any other dealer (This is the typical customer as I buy used cars but I will be buying the Tesla Truck if TSLA shares pay).
The dealers are not selling it today. I used to go into the Nissan dealerships frequently and the Leaf used to be under a tarp. They had no incentive to lead the charge and now they are behind is my thinking.
The big advantage I see is the dealers. Them being not owned by the dealer is the problem. I think Elon saw this early on as he wanted to own his own dealerships because there was no money in their business model. Also the dealerships don't want to be mechanic shops as the money in a mechanic shop is not the greatest return on money as they lose out on all the added profits of sales, dealer rebates and interest. In addition to first mover and tech, their charging station, the best talent and they have solar (I was also a SCTY investor) which means they have the entire market cornered I think. They also produce their own batteries.
Honestly the main reason is they said, here is our design, go copy us, we know you can't do better. When someone tells me that I respect it and that's the tipping point for me.
Edit: Most the dealerships in a city are owned by the same person from my understanding. So the big auto malls with Ford/GM/Toyota is all owned by 1 person.